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TAW - Tawana Resources NL - Mofe Creek Iron Project Strike Extensions Secured

Release Date: 08/05/2012 08:44:01      Code(s): TAW
TAW - Tawana Resources NL - Mofe Creek Iron Project Strike Extensions Secured   
Tawana Resources NL                                                             
(Incorporated in Australia)                                                     
(Registration number ACN 085 166 721)                                           
Share code on the JSE Limited: TAW                                              
ISIN: AU000000TAW7                                                              
Share code on the Australian Stock Exchange Limited: TAW                        
ISIN: AU000000TAW7                                                              
("Tawana" or "the Company")                                                     
Mofe Creek Iron Project Strike Extensions Secured                               
HIGHLIGHTS                                                                      
-    Mofe Creek Strike extensions secured via Binding Option Agreement with     
    Liberian exploration company                                                
-    48 km strike length of highly prospective itabirite interpreted            
-    DSO lump magnetite averages 63.8% Fe and low contaminants                  
-    Coarse grained itabirite averages 35-50% Fe with low contaminants          
-    Licence 10 km along strike from abandoned Bomi Hills Fe ore mine; +50 Mt   
    DSO magnetite and +100 Mt sinter feed                                       
-    Large discrete magnetic anomalies comparable to Bomi Hills                 
-    Licence 25 km from coast, adjacent to an decommissioned heavy-haul railway 
    and only 65 km from the deep sea port of Monrovia                           
-    Aeromagnetics survey planned for July 2012                                 
    Potential exists for rapid development of low capital intensity DSO Fe ore  
-    project generating significant cash flow                                   
Tawana Resources NL (ASX: TAW, the `Company`) is pleased to announce the signing
of a Binding Option Agreement to secure additional strike extensions to the     
Company`s 100% owned Mofe Creek license in western Liberia, referred to as the  
Mofe Creek Iron Project.                                                        
Tawana Resource NL, Managing Director, Len Kolff said "This represents an       
exciting opportunity to explore highly prospective Archean geology within one of
Liberia`s historic premier iron ore districts."                                 
"Initial reconnaissance sampling is very promising, returning over 60% Fe with  
low impurities whilst the project is located only 25 km from the coast, adjacent
to a heavy haul railway and only 65 km to an existing deep water port."         
Binding Option Agreement                                                        
The Company has signed a Binding Option Agreement with a Liberian Exploration   
company to secure prospective strike extensions to the Mofe Creek Iron Project  
in north-west Liberia. The terms of the Agreement remain commercial in          
confidence until the option period and due diligence has been completed. The    
Company is to pay the Vendor US$10,000 for exclusivity over a 60 day period     
whilst carrying out due diligence, after which it has the option to enter into  
commercial terms to secure strike extensions of the Mofe Creek project.         
Highly Prospective District Geology                                             
The Mofe Creek Project is located within one of Liberia`s historic premier iron 
ore mining districts. The project is 10 km along strike from the abandoned Bomi 
Hills iron ore mine. Historic production at Bomi Hills is poorly documented;    
however estimated historic production by the Government of Liberia is 50 Mt of  
high-grade magnetite and 100 Mt of high-grade sinter feed concentrate.          
Bomi Hills produced high-grade direct shipping ore (DSO) magnetite in addition  
to magnetite concentrate beneficiated from itabirite (metamorphosed and re-     
crystalised banded iron formation). DSO magnetite averaged 64.5% Fe, 4.5% SiO2, 
1.5% Al2O3 and 0.13% P, of which 53% formed lump material (average 11-37mm) and 
47% formed fines (<11mm). The beneficiated low grade itabirite concentrate      
averaged 64% Fe, 6% SiO2 and 0.04-0.05% P and was used to produce sinter feed   
(Gruss, 1973).                                                                  
The genesis of the Bomi Hills magnetite deposit is not clearly understood,      
however, general consensus is that it is hypogene and represents an itabirite   
that has come into direct contact with rising gneissic fronts and deep seated   
intrusions causing enrichment to coarse massive magnetite by metamorphic        
differentiation. Magnetite mineralisation is in direct contact with gneissic    
basement and is partially blind.                                                
Highly Prospective Project Geology                                              
Preliminary mapping has confirmed approximately 35 km strike length of itabirite
with interpreted apparent widths of between 500 m up to 2 km based on mapped    
outcrops. Broadly the itabirite dips shallowly to moderately steeply to the     
south-west between 40 to 60 degrees. In some areas the itabirite is sub-vertical
demonstrating the stronger structural control adjacent to the Todi-Shear zone   
and secondary structures off it.                                                
Strike extensions secured under this agreement allow for potential 48 km strike 
length in total of prospective itabirite. Strike extensions are based on        
historic aeromagnetics data flown by the US Geological Survey during the mid-70s
where similar scale and intensity magnetic anomalies are noted along strike from
confirmed itabirite outcrops within the Companies license area.                 
The iron formation is medium to coarse grained, sugary laminated quartz-        
magnetite +/- hematite with an average grain size of 2-5mm at varying degrees   
of weathering. Where strongly weathered, the material is less magnetic and      
easily crumbled by hand to liberate iron oxides from quartz gangue. From        
approximately 72 rock chips sampled to date, the iron formation averages 35-50% 
Fe, 45-20% SiO2, 0.7% Al2O3, <0.01% P2O5, 1.32% LOI and has been mapped over 35 
km of strike. Additional strike extensions secured under the JV are interpreted 
to extend the total strike to 48 km. No sulphur and below detection or at       
detection limit Ti, V or Cr was recorded within the samples.                    
Reconnaissance rock-chip sampling has confirmed high-grade DSO lump magnetite in
outcrop on at least one of the strike extensions further enhancing prospectivity
within the area.                                                                
(Mofe Creek license (red) and JV license (blue) with infrastructure and historic
Bomi Hills mine as overlay on analytical signal magnetics image. Interpreted and
confirmed strike extensions highlighted by magnetic anomalies to north-west and 
central-south of TAW license area - Image removed for sens purposes.)           
Metre scale outcrops of massive magnetite were also observed within the license 
area further enhancing the exploration model for hypogene, massive magnetite    
bodies like Bomi Hills. High-grade weathered friable hematite/magnetite and     
massive magnetite sampled in outcrop within the area returned on average 63.8%  
Fe, 3% SiO2, 2.4% Al2O3, 0.08% P and 2.6% LOI in 3 samples. This demonstrates   
the hypogene magnetite potential similar to Bomi Hills and further enhances     
prospectivity.                                                                  
(Left: Coarse grained, laminated quartz-magnetite iron formation. Right:        
weathered variety of similar rock type crushed by hand forming soft, friable    
quartz-magnetite sands easily beneficiated by magnet pen - Image removed for    
sens purposes).                                                                 
(Outcropping itabirite in project area; very coarse with outcropping massive    
magnetite (left) and more steeply dipping zone (right) - Image removed for sens 
purposes)                                                                       
Left: Outcropping iron formation with larger 10`s cm scale magnetite            
segregations. Right: Weathered, softened magnetite from outcrop forming high-   
grade, clean magnetite/hematite fines- Image removed for sens purposes)         
All samples were assayed by SGS Liberia and were sourced from in-situ           
outcropping material, were dried and crushed to a nominal 2 mm using a jaw      
crusher then the whole sample pulverised in a LM2 to a nominal 85% passing 75   
Picam. A 200g sample was then scooped, with iron ore analysis of majors and     
minors by borate fusion-XRF.                                                    
Location and Access                                                             
The project area occurs within Grand Cape Mount and Bomi Counties in Western    
Liberia and is approximately 100 km drive from Monrovia on well-maintained      
sealed roads, 20 km from an historic heavy-haul iron ore railway and deep sea   
port and 25 km from the coast.                                                  
Access to the project area is excellent with both sealed and laterite roads     
traversing the license area which is characterised by low, undulating topography
and widespread shrub with isolated forested areas.                              
(Left: Well-maintained sealed main road from Monrovia through license area.     
Right: Laterite road, topography and vegetation within license area- Image      
removed for sens purposes)                                                      
Infrastructure                                                                  
The Project is well positioned for possible future infrastructure scenarios;    
road or rail to the Monrovia deep sea port or road to coast and transhipment via
barge to deeper water for onward shipment.                                      
A well-maintained 100 km long sealed road exists from the central licence area  
to the city of Monrovia. In addition to this a decommissioned heavy-haul iron   
ore railway* exists from the Bomi Hills mine to the deep water port of Monrovia;
20 km east from the easternmost magnetic anomaly. Rail distance from Mofe Creek 
to the port of Monrovia is 65 km.                                               
Alternatively the Project area is approximately 25 km from the coast for        
possible stand-alone haul road construction, trucking and transhipment via barge
to deeper water shipping and infrastructure solutions.                          
Next Steps                                                                      
The company will complete due diligence on strike extensions under the JV       
agreement. The Company has contracted an airborne geophysical service provider  
to fly aeromagnetics over the project area currently scheduled for early July   
2012. Field mapping and rock-chip sampling will be carried out in parallel in   
order to define target areas in conjunction with air magnetics for pitting and  
or trenching.                                                                   
For further information please contact:                                         
Tawana Resources (ASX: TAW)         MAGNUS Investor Relations + Corporate       
Communication                                 
Lennard Kolff van Oosterwijk        John Gardner / Dudley White                 
Office: +61 424942589               Tel: +61 8 9212 0101 / + 61 2 8999 1010     
Reference: Gruss, H, 1973. Itabirite iron ores of the Liberia and Guyana        
Shields. In: Genesis of Precambrian iron and manganese deposits; Proc. Kiev.    
Symp., 1970 (Earth Sciences 9).                                                 
*Footnote: the railway line falls under the Western Cluster project currently   
owned by Elenilto Minerals and Mining and subject to a Joint Venture with       
India`s largest producer and exporter of iron ore in the private sector; Sesa   
Goa.                                                                            
The information in this report that relates to Exploration Results, Mineral     
Resources or Ore Reserves is based on information compiled by Lennard Kolff van 
Oosterwijk, who is a Member of the Australian Institute of Geoscientists        
included in a list promulgated by the ASX from time to time. Lennard Kolff van  
Oosterwijk is a full-time employee of the company and has sufficient experience 
which is relevant to the style of mineralisation and type of deposit under      
consideration and to the activity which he is undertaking to qualify as a       
Competent Person as defined in the 2004 Edition of the `Australasian Code for   
Reporting of Exploration Results, Mineral Resources and Ore Reserves`. Lennard  
Kolff van Oosterwijk consents to the inclusion in the report of the matters     
based on his information in the form and context in which it appears.           
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
8 May 2012                                                                      
Date: 08/05/2012 08:44:00 Supplied by www.sharenet.co.za                     
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